Analyzing Enghouse Systems (OTCMKTS:EGHSF) & Kinaxis (OTCMKTS:KXSCF)

Enghouse Systems (OTCMKTS:EGHSF) and Kinaxis (OTCMKTS:KXSCF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Enghouse Systems and Kinaxis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enghouse Systems	0	1	0	0	2.00
Kinaxis	0	0	4	0	3.00

Profitability

This table compares Enghouse Systems and Kinaxis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enghouse Systems	N/A	N/A	N/A
Kinaxis	14.50%	19.79%	11.66%

Insider & Institutional Ownership

25.2% of Enghouse Systems shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Enghouse Systems and Kinaxis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enghouse Systems	N/A	N/A	N/A	$1.11	10.07
Kinaxis	$548.03 million	5.47	$70.70 million	$1.72	63.99

Kinaxis has higher revenue and earnings than Enghouse Systems. Enghouse Systems is trading at a lower price-to-earnings ratio than Kinaxis, indicating that it is currently the more affordable of the two stocks.

Summary

Kinaxis beats Enghouse Systems on 8 of the 9 factors compared between the two stocks.

About Enghouse Systems

Enghouse Systems Limited, together with its subsidiaries, develops enterprise software solutions worldwide. It operates through two segments, Interactive Management Group and Asset Management Group. The Interactive Management Group segment provides customer interaction software and services to facilitate remote work, enhance customer service, increase efficiency, and manage customer communications across various types of interactions, including voice, email, web chats, text, and video. Its technologies include contact center, video collaboration, video health monitoring, video room systems, interactive voice response, artificial intelligence, outbound dialers, attendant console, agent performance optimization, customer survey, business intelligence and analytics that may be deployed in private cloud, multi-tenant cloud or on-premise environments. This segment serves financial services, media businesses, telecoms, business process service providers, as well as technology and health care companies. The Asset Management Group segment offers a portfolio of software and services to cable operators, network telecommunication providers, media, transit, defense, and public safety companies. This segment’s products include network infrastructure, operations support systems, and business support systems, as well as video and cloud TV solutions. This segment also provides fleet routing, dispatch, scheduling, transit e-ticketing and automated fare collection, communications, and emergency control center solutions for the transportation, government, first responders, and security sectors. The company also offers SaaS based enterprise mobility management solutions; Video Engagement Platform that provides video creation, content management, and highly scalable delivery solutions; and cloud communications. Enghouse Systems Limited was incorporated in 1984 and is headquartered in Markham, Canada.

About Kinaxis

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. It offers RapidResponse, a cloud-based platform, which provides advanced planning, sales and operation planning, supply and demand planning, inventory management, and command and control center services. The company also provides strategic services, such as digital business transformation, advanced analytics, and digital innovation and acceleration services; implementation, including agile implementation methodology, RapidStart, sustainment, and rollout services; and continuous learning services consisting of Kinaxis learning center, custom learning programs, and certification, as well as support services. It serves aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences, logistics, and retail industries. The company was formerly known as Webplan Inc. and changed its name to Kinaxis Inc. in May 2005. Kinaxis Inc. was founded in 1984 and is headquartered in Ottawa, Canada.